Month: April 2022

The suggestions come as the Commission said Belgium’s government is considering plans to tighten advertising rules further. Bonuses are already banned in Belgium, while a Royal Decree that attempted to ban marketing online casino games was ultimately struck down by a court ruling.

The regulator proposed six “strict measures”, that it said would limit the amount of advertising seen by the most vulnerable groups.

The first of these measures was a prohibition on personalized advertising for young people excluded players or players who have not gambled for a long period of time. However, the regulator did not mention a cut-off for age or length of break for this to apply.

As well as this, it suggested a general “restriction on persons to whom it is permitted to advertise”.

In addition, it suggested a requirement to include a warning message in all ads, and a requirement for players to opt-out of personalized advertising.

The Commission also proposed a ban on advertising in public places such as billboards in train stations.

Finally, the regulator suggested “determining the volume of permitted advertising,” though it did not suggest a specific frequency of ads that should be the limit.

As well as this, the Commission called for more flexibility in its ability to enforce rules. It said it would be able to work more effectively if provided with guidelines of how rules should be applied, rather than simply having a list of banned marketing methods.

“Experience has indeed shown that an exhaustive enumeration of prohibitions relating to the content of advertising, as currently contained in the Royal Decree of 2018, is not sufficient to prevent abuses and excesses and that certain rules quickly become obsolete and cannot be maintained,” the regulator said.

“Guidelines would have the advantage of being ‘future proof’ and evolutionary in order to better reflect reality and changes on the ground. This would also strengthen the role of the Gaming Commission as regulator of the sector.”

As well as this, the regulator said that it needed more power to act quickly when marketing rules are broken. 

“Conducting a lengthy sanctions procedure, as is currently the case, is of no use in the context of an advertising campaign that is short-lived by nature,” it said.

This comes soon after Belgian legislators introduced an amendment that would force players to register for separate online betting and casino accounts. This move was heavily criticised as potentially damaging to safer gambling efforts by local operator association BAGO.

Earlier this year, the Belgian government introduced new restrictions on stakes, betting times and advertising for the country’s newsagents, which may offer bookmaking services.

This came after gaming operator Golden Palace acquired the retail network of national postal service Bpost, prompting concern about betting at newsagents.

Currently, there are 21 casino licensees in Switzerland, each representing a different region of the country. However, the Swiss Federal Gaming Board (ESBK) submitted a report and recommendations to update this system to the Federal Council.

This included adding two new regions – Lausanne and Winterthur. The existing 21 casinos will all be preserved in the new map.

Both of the new casinos will be granted Class A licences, which have no limitation on stakes, bringing the number of Class A licences to 10. The other 13 operators hold Class B licences, which means that players cannot stake more than CHF25 (£20.57/€24.44/$25.81) on slot machines.

A Class A licence is granted to casinos that are expected to bring in revenue of more than CHF30m annually.

A tender process for applications for the new licences will begin in May, with the winning licensees to be selected in the autumn.

As well as land-based operations, Swiss casino licensees are permitted to offer online gaming, through partnerships with online operators.

Under the acquisition, GBGC’s global betting and gaming data and reports will move under the Regulus suite of products. In addition, the GBGC research team in Isle of Man and Croatia will join the Regulus team.
“The GBGC database and team are a great fit for Regulus because they have always been as accurate and thorough as possible in an often opaque and uncertain environment,” Regulus co-founder Paul Leyland said. “We intend to invest further in the team’s proven capabilities to ensure that we develop a market leading product.
“Given the increasing scale and complexity of the industry, there has never been a greater need for high quality data and we are delighted to welcome such a high quality team to the Regulus family.”
Warwick Bartlett, who founded GBGC in 2001, will continue as a non-executive director.
“Regulus is a good fit for GBGC because we both complement each other in so many ways,” Bartlett said. “The combined business will be able to offer the gambling industry and its stakeholders an unparalleled service.
“The clients of both our businesses will benefit tremendously from the additional services that will assist them in the management and expansion of their businesses.”

Under the deal, B2B Gaming will take full ownership of all the intellectual property, games, systems, and properties of both Asia Live Tech and Start Live Casino.

The offerings of both businesses will be rebranded as part of B2B gaming, “to ensure there is no confusion among customers”. Meanwhile, the corporate websites of both Asia Live Tech and Start Live Casino will redirect to B2B Gaming’s official website at b2bgaming.com

In a joint statement, the businesses reassured clients that its offering would continue to grow under the new ownership.

“We deeply care about you and wish our clients continuous growth and more success in the years to come. You are in safe hands with B2B Gaming and will for sure have more offerings to avail in the days to come,” they said.

Staff at both businesses will be retained, except for members of upper management, who will enter a six month transition period before leaving the business.

“ALT and SLC have expressed good wishes to them for their next ventures and thanked them for their commitment over the years in developing both Asia Live Tech and Start Live Casino into internationally renowned companies,” Asia Live Tech and Start Live Casino said.

The levy forms part of six new principles published by GambleAware today (27 April), which were formed to combat gambling harms that could be exacerbated by the cost of living crisis, continuing financial issues from the Covid-19 pandemic and a increased shift to online gaming.

The charity had previously said that it hoped to see a mandatory levy implemented earlier this month, as part of its its submission to the Department of Digital Culture, Media and Sport’s (DCMS) Gambling Act review.

The levy would fund treatment and research into gambling harms. For 2019 to 2020, GGR totaled at £14.1bn, meaning the levy would raise around £140m.

Currently, operators provide voluntary funding towards research, education and treatment, but GambleAware said paying the levy should instead be a mandatory condition to receive a licence in the UK.

the second principle that GambleAware listed to combat harm was a reduction in equality, as evidence has suggested that those from deprived communities are the most at-risk of developing gambling problems. GambleAware explained that this was heavily linked to rising costs of living.

Supporting early intervention for problem gamblers is also included as a priority. This, GambleAware said, could mean more early help is offered by non-NHS providers, so the NHS can focus on care for more complex cases.

The three remaining principles are innovation-driven support, collaborative expertise from treatment professionals and a culture of change among investors.

“The ongoing impact of the pandemic, a growing cost-of-living crisis and shift to online gambling means there is a potential increased risk of people experiencing gambling harms that remains unseen until an individual reaches a crisis point,” said Zoë Osmond, CEO of GambleAware. “Without action now, many more people and families could suffer.”

“That’s why we are calling on the government to introduce a mandatory, 1% levy of GGR on the gambling industry as a condition of licence. This could be delivered in a matter of months and could almost treble the amount of funding going to preventing and treating gambling harms.”

Last week GambleAware announced a £2.5m expansion to its Gambling Education Hubs across England and Wales.

The rapid growth in revenue came as betting handle grew to $78.2m, up 202.0% year-on-year.
The business’s costs of revenues also rose quickly, growing more than ten times over to $8.9m.
However, this still left a gross profit of $2.2m, which was up 216.8%.
The business then paid a further $26.9m in operating costs, though, up 258.7%.
The largest of these costs were share-based compensation expenses, at $10.5m, after these costs were only $67,111 in 2020. Other operating costs included $6.2m in general and amortisation costs, $6.1m in marketing expenses, $1.5m in bad debt expenses and $1.3m in technology and content costs.
As a result of these costs, Rivalry made an operating loss of $24.7m, compared to a $6.8m operating loss in 2020.
After minimal interest and investment costs, Rivalry’s net loss was also $24.7m, which was 258.0% more than the loss recorded in 2020.
After accounting for exchange rate differences, Rivalry’s total comprehensive loss was $22.3m, a 224.8% increase.
While losses grew, Rivalry co-founder and CEO Steven Salz said the year was a major success as the brand continued its expansion.
“We had a tremendous year by nearly all measures in 2021. Our team delivered triple-digit growth, secured the financial resources to accelerate our momentum, continued to strengthen our originally developed product, added significant talent depth to our bench, and further solidified Rivalry as the most engaged brand in esports betting globally.”

The year was also the first in which Rivalry listed its subordinate voting shares on the TSX Venture Exchange (TSXV)
Salz then added that this growth continued into Q2 of 2022.
“I’m also pleased to say we have continued that pacing into 2022, with our Q1 betting handle delivering 62% sequential growth over Q4, and up 273% year-over-year,” he said.
In Q1, betting handle reached a new record of $40.2m, up 273% year-on-year.
At the start of Q2 of 2022, meanwhile, Rivalry launched its operations in Ontario when the market launched, as one of the initial operators to receive a licence.
“Our focus in 2022 is growth across product, new geographies, and an expansion of Rivalry’s creative universe to capitalize on what we believe is a generational opportunity to become the leader in betting and entertainment for the next generation. Through financially disciplined management, and executing on our targeted operational goals, we believe our positive unit economics will improve, and a path to profitability will become clear,” Salz said.

Revenue for the three months to 31 March 2022 reached £246.7m (€293.8m/$308.5m), down from £352.6m in the corresponding period last year and in line with figures posted in an update earlier this month.

B2C activity accounted for £242.4m of total revenue for the quarter, down 31.3% year-on-year, while B2B revenue from its Relax Gaming operation, acquired in October last year, amounted to £4.3m.

Kindred said the overall decline was primarily the result of is exit from the Dutch market in October last year, with the operator having temporarily withdrawn ahead of the country’s regulated market opening on 1 October. Kindred intends to relaunch in The Netherlands when it secures the relevant licence.

Breaking down revenue by product, casino and games accounted for 49.0% of revenue in Q1, ahead of sports betting on 46.0%, poker with 3.0% and other games in 2.0%.

In terms of regional performance, 52.0% of all revenue came from Western Europe, while 31.0% was attributed to the Nordics, 11.0% Central, Eastern and Southern Europe, and the remaining 6.0% other regions.

On Q1, the operator was also faced with calls to withdraw from Norway when the country’s threatened Kindred with a daily fine of NOK1.2m if it did not stop operating in Norway. In response, Kindred argued it is not violating Norwegian law and thus would not change its actions.

Other events in Q1 included Kindred signing a new three-year agreement with sports betting supplier Kambi, while the operator secured a licence in Ontario for its Unibet brand.

Moving on to spending for the quarter, cost of sales was 20.5% lower at £113.2m, but total administrative expenses increased 15.9% to £65.7m. A further £2.4m loss was noted in other losses, while finance costs for the period amounted to £700,000.

This left a pre-tax profit of £7.6m, down 91.1% from £85.3m in the previous year. Kindred paid £1.2m in income tax, meaning it ended the quarter with a net profit of £6.4m, a year-on-year drop of 91.2% from £72.6m in 2021.

Kindred also noted that the revenue decline led to a 76.9% decline in underlying adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) from £106.0m to £24.5m.

“Our diversified product and market mix provides us with a relative degree of stability across the group,” Kindred chief executive Henrik Tjärnström said. “We have seen this on several occasions, not least during the pandemic when sports virtually disappeared for a period. 

“Excluding The Netherlands, our diversified portfolio has seen solid casino performance across markets during the first quarter of 2022 with growth of 1% from the same period in the prior year despite tough comparatives. This has balanced out the slightly more volatile sportsbook, which started out strong but had a weaker second half of the quarter.

“The cessation of activity in the Dutch market continued to have a short-term impact on our gross winnings revenue. While this temporary top-line pressure reduces our profitability in the short-term, we maintain a very positive long-term view on the return from investments in our tech platform and strategic projects, such as our US expansion and the recently announced Kindred sportsbook platform.

“We have an exciting time ahead of us and I have great confidence in the direction we are taking through our long-term focus.”

Kindred also published a trading update for the period up to and including 26 April, with average daily gross winnings revenue for the group 37.0% lower than the daily average for the full second quarter of 2021. Excluding The Netherlands, average daily gross winnings revenue 15.0% down on last year.

Kindred said sports betting gross winning revenue was negatively impacted by a weak sports betting margin of 7.8% after free bets, compared to 10.7% in Q2 last year, whereas daily average gross winnings revenue for casino and other products remained at the same level as the full first quarter of 2022.

Revenue for the three months to 31 March 2021 was €170.2m (£142.9m/$178.9m), up from €157.4m in the previous year.

Casino accounted for €111.0m of total revenue in the quarter, though this was down 4.6% on last year after Betsson stopped operating in The Netherlands following the launch of its regulated market. The operator also noted new regulations in Germany also contributed to this decline.

Sportsbook revenue reached €56.4m, up 45.0% on 2021 and a new quarterly record for the group. Betsson said this was driven by a high sportsbook turnover and an above-average margin, helped by strong returns from domestic football leagues, as well as the Uefa Champions League and Europa League competitions.

Revenue from other products including poker and bingo also increased 29,0% from €2.1m in Q1 of 2021 to €2.7m this year.

In terms of geographical performance, the Nordics region led the way with €54.1m in total revenue, representing 32.0% of all revenue for the quarter. Central & Eastern Europe and Central Asia followed with €53.4m, then Latin America on €36.8m, Western Europe with €22.2m and the rest of the world on €3.7m (2.0%).

Looking at developments during the quarter, Betsson launched in both Colorado in the US and Buenos Aires in Argentina. Betsson also appointed Roland Glasfors as vice president responsible for communications, sustainability and investor relations and proposed adding Eva de Falck, Louise Nylén and Tristan Sjöberg as new board members.

Turning to spending, costs of sales increased 14.7% to €63.1m. The operator said this was “mainly driven by higher cost of betting duties from increased share of locally regulated revenue and
increased payment provider costs”.

Operating expenses were also 11.2% higher at €83.5m. This included €27.0m worth of marketing expenses, down slightly from 2021, and €26.0m worth of personnel expenses, an increase due to geographical expansion.

Financial expenses remained level at €1.3m, but overall higher costs meant pre-tax profit fell 14.2% to €22.3m.

Betsson paid €1.4m in income tax, which left it with a net profit of €20.9m, a decline of 11.8% from €23.7m last year. The operator also noted that higher spending led to a drop in earnings before interest, tax, depreciation and amortisation (EBTIDA), which fell 6.7% to €33.4m.

“Once again, new records were set for sportsbook revenue and in several individual markets. It has been said many times before, geographic diversification makes Betsson’s business less sensitive to disruptions in individual markets,” Betsson’s chief executive Pontus Lindwall said.

“The launch in March of the proprietary sportsbook in the US was an important milestone in Betsson’s continued global expansion. The US investment is primarily focused on presenting the US adapted sportsbook to other operators within the framework of the B2B offering. 

“Looking ahead, we are seeing more undertakings on the horizon. Our ambition is to further strengthen our presence in North America by operating under a new licence in the Ontario region in Canada starting this summer. We also aim to launch in Mexico together with our local partner Big Bola Casino in 2022.

“Applications to operate in the Netherlands under the new licence model were submitted during the quarter in line with the group’s plan.

“All in all, the year has been off to a good start as there are many important activities that we look forward to during the remainder of 2022.”

Blexr did not disclose the specific financial details of the purchase but did confirm that the deal was worth a seven-figure sum.

CasinoReviews.net.nz publishes reviews of online casinos that accept players located in New Zealand. Blexr said it plans to build on the website’s reputation and further strengthen its presence in the country’s market.

“We believe this acquisition will blend very well into our existing product portfolio while increasing our presence in our target markets,” Blexr’s head of marketing Koen Bongers said.

“New Zealand has a high interest in slot machines – called ‘pokies’ locally – and our bespoke free casino games technology allows us to create a highly localised offering in the market that will stand out from the competition.

“We have big plans for this website and are excited to see how it will grow in the coming months.”

The acquisition comes after Blexr recently also expanded its management team by naming Nick Walker as its new chief operating officer and Andrew Isidoro as chief marketing officer.

Both Walker and Isidoro will join the Blexr management team and support the business with its ongoing growth and expansion plans.

The authority determined that Golden Crown Casino, Sol Casino, PowBet, ExciteWin, Sportaza and Gamble Online all breached the Interactive Gambling Act 2001 by offering their services to players in Australia.

As such, it requested that Australian internet service providers (ISPs) block each of the websites.

Since the ACMA made its first blocking request in November of 2019, a total of 447 illegal gambling sites have been blocked in the country.

In addition, a further 160 illegal services, including operators and affiliate businesses, have pulled out of the Australian market since the ACMA began enforcing new illegal offshore gambling rules in 2017.

“Website blocking provides a valuable opportunity to alert the public to illegal gambling services through the messaging that appears when there is an attempt to access the site,” the ACMA said.

“The ACMA is reminding consumers that even if a service looks legitimate, its unlikely to have important customer protections. This means Australians who use illegal gambling services risk losing their money.”

The blocking orders come after the ACMA this week also announced that it had commenced civil penalty proceedings in Federal Court against three parties over allegations of illegal online gambling.

Each each case relates to the provision of prohibited online gambling services through ‘PPPfish’, a service that was later rebranded as ‘Shuffle Gaming’ and later ‘Redraw Poker’.

Rhys Edward Jones is alleged to have provided these prohibited online gambling services to Australians between March 2020 and March 2021, while Diverse Link Pty delivered these services from March 2021 to the present.

Brenton Lee Buttigieg was also named by the ACMA, with the organisation saying he was involved in promoting and referring customers to those services.